Bitcoin (BTC), the largest and most popular cryptocurrency in the world could reach a market capitalization of over $1 trillion. In order for this to happen, Bitcoin would have to be traded around $55,000 taking into account the current number of BTC in circulation. ARK’s Big Ideas 2020 considers that Bitcoin is one of the most transformative technologies in the world. The New York adviser considers that there are three cases that could push Bitcoin to reach a market capitalization of $1 trillion. These cases include the fact that it could become a medium of exchange, it can be used as a store of value or that it can be a protection against asset seizure. In this article, we will share with you what these three cases mean for Bitcoin and how it is possible for you to maximize your earnings with it.
Bitcoin can easily be used as a medium of exchange. Satoshi Nakamoto described it as a peer-to-peer (P2P) Electronic Cash System that could be used to send and receive transactions between individuals without the need of a trusted third party. Users can easily send funds from one country to another or process a small payment using Bitcoin and without having to rely on the services provided by a third-party entity such as a bank or centralized financial company. Users can easily process transactions to pay for goods and services rather than depending on fiat currencies like the ones issued by governments. If Bitcoin is able to replace a fraction of the total $40 trillion money supply around the world, it would be possible for it to become a catalyst for currency demonetization. At the same time, it will allow it to reach a market valuation of over $1.1 trillion, as analysts predict. While banks and other entities can reject specific transactions, Bitcoin will always be processing your funds. You can be sure that there will be no company or centralized organization freezing your transactions or funds.
Bitcoin could also become a store of value in the future. Definitely, if it becomes a medium of exchange, it will also be worth much more than now. With this higher value and lower volatility due to its higher liquidity, it will be possible for the cryptocurrency to become a store of value as gold did in the last few years. In the last thousands of years, gold became a store of value for populations all over the world. Knowing that there is a limited supply, individuals felt they could find a safe haven in gold in periods of difficulty. With Bitcoin, things would be a little bit different. While gold needed thousands of years, Bitcoin could become a store of value in the near future if its value reaches such a large price (over $50,000). It is worth remembering that Bitcoin reached a record of $20,000 in December 2017. At the same time, Bitcoin could be used as a store of value in a period of crisis or during a time of financial uncertainty. Gold works as a safe haven asset and Bitcoin could follow the same path in the coming years.
Bitcoin can also work as a protection against seizure from governments. Indeed, the virtual currency can be very useful in countries where governments are violent and threaten individuals’ freedom. In general, dictatorships tend to seize private property, gold, money and jewels from their populations. However, they cannot do the same with Bitcoin and other cryptocurrencies. If you hold your private keys and you properly store them, you would only be the one able to access these virtual currencies. This is good for populations such as the people living in Venezuela. Venezuela has imposed very hard measures on its population and it has also affected the life quality of its citizens. As Bitcoin continues to expand, it could become a very useful tool to avoid these issues in the future.
Bitcoin seems to be entering a new bull market that would help the virtual currency reach even higher values than now. This is expected to be very positive for the digital asset that, as we mentioned before, has many different use cases. One of the best ways to handle virtual currencies and trade Bitcoin is by doing so through AltSignals, a crypto trading signals provider. Trading signals can be very useful for both experienced and newcomers to the industry. This is why it is important to start learning how to better improve our trading strategies with AltSignals. AltSignals provides crypto and FX trading signals for users. In the last months, many of their services for BitMEX and Binance were very profitable, indeed, it was possible for traders to get very large profits. If you want to know more about it, you can check our previous articles about AltSignals and how to better trade digital assets.
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